The Minority in Parliament is urgently calling for a comprehensive audit of Ghana’s energy sector to evaluate the extent of its escalating debt, which they claim has surpassed $2 billion. The caucus attributes this alarming increase to the government’s alleged mismanagement of funds collected under the Energy Sector Levy Act (ESLA).
John Jinapor, the Ranking Member on Parliament’s Energy Committee, voiced these concerns during a media briefing, emphasizing the urgent need for accountability in the sector. He criticized the administration of President Nana Addo Dankwa Akufo-Addo, suggesting that the government’s negligence is setting up a precarious situation for the future government of John Dramani Mahama.
Jinapor specifically highlighted the Ministry of Finance’s failure to pay for GH¢1.8 billion worth of electricity consumed by Ministries, Departments, and Agencies (MDAs) since August 2023. This non-payment has significantly impacted the overall stability of the power sector, contributing to its financial woes.
“PURC, based on its statement, has indicated that the ECG is not abiding by the Cash Waterfall Mechanism,” Jinapor explained. “This mechanism is crucial as it allows companies and entities throughout the energy sector value chain to receive the revenue or payment they are owed. Unfortunately, this has been disregarded.”
He further stated that the government’s inaction in addressing these issues could lead to a collapse of the energy sector, jeopardizing the livelihoods of Ghanaians. “As if that is not enough, the Ministry of Finance has not paid even a Cedi for power consumed by ministries, departments, and agencies since August 2023,” he stressed.
According to Jinapor, the government’s mismanagement is evident not only in the failure to settle debts but also in the improper application of energy sector levy revenues. “From our rough estimates, that debt alone amounts to GH¢1.8 billion. Clearly, they are just trying to manage the system and hand over a dilapidated, ageing equipment, collapsed energy sector to President Mahama when he assumes office,” he asserted.
He painted a bleak picture of the challenges awaiting Mahama, should he return to power, particularly emphasizing the burdens of the energy sector’s debt. “A lot of work awaits President Mahama when he assumes office. The energy sector debt alone, based on our rough estimate, is around $2 billion as we speak. They are misapplying the energy sector levy revenues, and they are also misapplying the energy sector recovery levies,” Jinapor added.
The Minority’s call for a comprehensive audit aims to shed light on the financial management practices within the energy sector and hold the government accountable for its handling of public funds. They believe a thorough examination will reveal the true extent of the debt crisis and inform necessary policy changes moving forward.
As the nation grapples with economic challenges, the state of the energy sector remains a critical issue for citizens and policymakers alike. The Minority’s emphasis on transparency and accountability is seen as vital to restoring public confidence in the management of Ghana’s energy resources.
The implications of the growing debt in the energy sector are far-reaching. If left unchecked, it could lead to increased energy costs for consumers, further strain on government finances, and a potential collapse of essential services. The Minority is advocating for immediate action to avert such dire consequences.
In conclusion, the Minority’s demand for an audit reflects their commitment to addressing the pressing issues within Ghana’s energy sector. With mounting debt and mismanagement claims, the urgency for a transparent and accountable energy sector has never been more critical. As Ghana prepares for the upcoming elections, the state of the energy sector will undoubtedly be a pivotal issue for voters.
